- Toyota announces $1 billion investment across Kentucky and Indiana plants
- Kentucky will target battery electric vehicle (BEV) production
- Japanese manufacturer has announced three new electric models this year
As numerous automakers scale back their electrification strategies, Toyota appears to be gearing up for a big push, as it has not only announced three new battery electric vehicles for this year, it also has plans to invest heavily in US manufacturing plants.
This year, US customers can expect to see the compact Urban Cruiser SUV, the C HR+ and an updated bZ4x model arriving, with a new fully electric, seven-seat Highlander SUV making its debut in 2027.
"Toyota is accelerating when most are slowing down," Stephanie Valdez Streaty, Cox Automotive’s director of Industry Insights, told USA Today. "The bZ is the number three top-selling EV this year through the end of February 2026”, she added.
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The news is further buoyed by the company’s announcement that it will invest in US manufacturing, with an $800 million earmarked to prepare its Georgetown, Kentucky, plant for production of battery electric vehicles.
According to The EV Report, the investment is part of Toyota’s November 2025 commitment to spend up to $10 billion across U.S. plants over five years.
The Japanese marque has famously been slow to offer an extensive range of BEVs, hedging its bets with both plug-in and mild hybrid options instead. But recent reports suggest it is forging ahead with electrification, while many other manufacturers are pulling the plug.
Analysis: Toyota plays the long game — and it could pay off
Despite the gloomy headlines, which have reported a sharp drop-off in EV sales at the beginning of this year, demand for electric vehicles remains in the US, with Cox Automotive reporting that EV sales were up 5.8% in February from January this year.
But the market remains woefully underserved if you compare it to Europe and much of Asia.
This is because a growing number of automotive brands are pulling a U-Turn on their decision to launch new models or update old ones, with the likes of Acura, Honda and Dodge all saying they won’t push forward with North American EV plans.
What’s more, brands like Kia, Hyundai, Volkswagen and Volvo have all cancelled or delayed plans to introduce models to the US, citing volatile market conditions.
Regardless of this cooling of demand for new EVs, fueled in part by a cutting of incentives and trade tariffs increasing sticker prices, reports suggest the used market is booming.
Reuters claims that an increasing number of Americans are turning the pre-owned market into a key entry point for buyers priced out of new EVs as federal incentives fade.
"Quite frankly, the best strategy is to make sure that you're selling what your customers want and being prepared for the future of what customers want as well," Julia Rege, Toyota's general manager of environmental regulation and research, said during a recent news briefing, according to USA Today.
By playing the long game and not rushing into electrification, Toyota could be well placed to serve the swelling demand in the US, where volatile fuel prices are further pushing customers towards alternative powertrains.
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